Economic Indicators

U.S. Economy Grew at 1.6% Rate in Q1 2024, Weaker Than Expected 

Real gross domestic product (GDP) increased at an annual rate of 1.6 percent in the first quarter of 2024, according to the “advance” estimate. In the fourth quarter of 2023, real GDP increased 3.4 percent. The increase in the first quarter primarily reflected increases in consumer spending and housing investment that were partly offset by a decrease in inventory investment., read the full BEA report.

The GDP is measured as the total market value of the goods and services produced within a specific geography during a given time period. Gross domestic product is a key indicator of the general health of the economy and its performance, with increases indicative of economic growth.

Michigan’s Unemployment Rate Remained Constant in March 2024

Michigan’s March 2024 monthly unemployment rate remained constant at 3.9%. Michigan’s unemployment rate was one-tenth of a percentage point larger than the U.S. rate. The Detroit MSA’s unemployment rate also remained constant at 3.8% in March 2024.

U.S. Economy Grew at 1.6% Rate in Q1 2024, Weaker Than Expected 

Real gross domestic product (GDP) increased at an annual rate of 1.6 percent in the first quarter of 2024, according to the “advance” estimate. In the fourth quarter of 2023, real GDP increased 3.4 percent. The increase in the first quarter primarily reflected increases in consumer spending and housing investment that were partly offset by a decrease in inventory investment., read the full BEA report.

The GDP is measured as the total market value of the goods and services produced within a specific geography during a given time period. Gross domestic product is a key indicator of the general health of the economy and its performance, with increases indicative of economic growth.

Inflation Increased 3.5% Over the Last 12 Months For All Items

U.S. consumer price index (CPI), a key measure of inflation, in March, increased 0.4 percent, seasonally adjusted, and rose 3.5 percent over the last 12 months, not seasonally adjusted. The all items less food and energy index rose 3.8 percent over the last 12 months. Read the full report.

Detroit Region’s Jobs Increased in March 2024

The Detroit MSA’s monthly payroll jobs increased by 1,500 to 2,034,200  in March 2024. Payroll jobs are still below 8,200 compared to March 2019 pre-pandemic levels.

Michigan’s Labor Force Participation Increased in March 2024

The March statewide labor force participation rate increased by one-tenth of a percentage point over the month to 62.3 percent. Michigan’s LFPR sits 0.4 percentage points below the national rate of 62.7%.

Michigan New Business Applications Had Second Strongest Year On Record and Strong Trend Continues Into 2024

New business applications decreased 25% year-over-year amounting to 12,674 in March 2024. Despite the decrease in March, new business application still remain strong. In 2023, new business applications totaled 147,493, a 8% increasing over 2022 and were 56% higher compared to 2019.

Consumer Sentiment Moved Sideways For the Fourth Straight Month in April 2024  

According to the University of Michigan Surveys of Consumers, consumer sentiment registered at 77.2 in April 2024. According to Surveys of Consumers director, Joanne Hsu, since January, sentiment has remained remarkably steady within a very narrow 2.5 index point range, well under the 4.8 points necessary for a statistically significant difference in readings.2.5 index point range, well under the 4.8 points necessary for a statistically significant difference in readings.

The long-run business outlook inched up to reach its highest reading since June 2021, while views of personal finances softened. Different parts of the population exhibited offsetting changes this month. Republicans posted notable declines in sentiment this month, whereas Democrats and Independents did not. Sentiment for younger consumers rose, in contrast to middle-aged and older adults whose sentiment changed little or fell. Overall, consumers continue to express uncertainty about the future trajectory of the economy pending the outcomes of the upcoming election, but at this time there is no evidence that global geopolitical factors are on the forefront of consumers’ minds. Read the full report. 

 The Consumer Sentiment Index is a statistical measurement that provides an economic indicator of consumers’ opinion and optimism of the state of the economy. Consumer views over their personal finances haven’t changed much from April, with stable income expectations supporting consumer spending for the time being. 

PMI® Expanded in March After Contracting for 16 Consecutive Months

The Manufacturing PMI® registered at 50.3% in March, up 2.5  percentage points compared to February’s reading of 47.8%, according to the Institute for Supply Management® (ISM®).

ISM® states a reading above 50% shows that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting. The index is based on a monthly survey of supply chain managers and measures general direction of economic trends in manufacturing and other sectors.

Passenger Traffic Increases Year-over-Year

Detroit Metropolitan Airport experienced a 10.5% increase in total passengers in February 2024 totaling 2.3 million passengers compared to February 2023.